A decrease in stock prices alters the consumption function by:
A. decreasing the vertical intercept.
B. decreasing the slope.
C. increasing the vertical intercept.
D. increasing the slope.
Answer: A
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If, in the market for money, the quantity of money demanded exceeds the money supply, the interest rate will
A. fall, causing households and businesses to hold more money. B. rise, causing households and businesses to hold more money. C. fall, causing households and businesses to hold less money. D. rise, causing households and businesses to hold less money.
The costs affecting decisions to supply are always
A) accounting costs. B) marginal costs. C) past costs. D) per unit costs. E) non-taxable costs.
A lottery game pays $500 with .001 probability and $0 otherwise. The variance of the payout is
A) 15.8. B) 249.50. C) 249.75. D) 499.
Incrementalism makes sense from a politician's perspective, because _____
a. it keeps all government employees happy b. it eliminates the cost of preparing a budget c. it maximizes political support by giving all special interests something d. they want to be seen in favor of bigger government